Swedish residential property market booming

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The property market in Sweden is still on the boil, according to figures released on Wednesday.

The average price for houses has increased by 9% in Sweden over the last 12 months, while the average apartment was worth 23% more in March 2006 than in March 2005.

Unsurprisingly, the growth is fuelled by high demand and rising prices in Sweden's cities, said the Association of Swedish Real Estate Agents, which surveyed over 12,500 apartments and 9,000 houses between January and March.

House prices have increased by 11% in the last 12 months in Stockholm and by 12% and 8% in Gothenburg and Malmö respectively.

But the increase is far steeper when it comes to apartments. In Stockholm, prices have risen by 28% in the last year. Malmö's apartments have increased in value by 19% and Gothenburg has seen prices climb by 17%.

Across the country, however, the number of bids made on properties has declined slightly compared to the same period last year.

This can be explained by the unusually long winter, said the association's Per Johnler, who noted that things have picked up in May.